by Rachel Liu

Newly released data shows that from July 6^th to 12^th, JD sold four million ice cream products. Sales of ice cream increased over 16 times on July 10^th, which was the Super Ice Cream Day on JD. Nearly 400 types of ice cream products from 30 brands were rolled out on JD during the promotion.

Traditionally, customers like to buy ice cream in convenience stores or community stores instead of online because they are worried that ice cream will melt during transportation. JD’s cold-chain logistics and fast delivery, however, allow customers to order ice cream online with peace of mind. JD has launched a series of services for ice cream lovers on JD, including melt insurance and scheduled purchase. Scheduled purchase allows customers to choose how often they want to receive products and how many they want each time. JD Logistics will deliver the products based on their personal needs.

Interesting Trends on Ice Cream Consumption:

• On JD, crossover ice cream products receive great popularity, as they are usually unique and innovative. For example, Chinese ice cream brand Chicecream and Zongzi (rice cake that Chinese eat on Dragon Boat Festival) brand Wufangzhai jointly launched a “barley leaves” (leaves used to make Zongzi) flavor ice cream. Sales of the product increased 106% during the promotion comparing with the same period in June.

• Customers like to buy mini size ice cream, such as mini Magnum and mini Cornetto. More and more families like to buy ice cream online, and mini size ice cream is suitable for children to eat.
• Sales of ice cream by post-1995s and post 2000s customers increased 17 times y-o-y. They have become the fastest growing group among all customers.
• Sales increase of ice cream in lower-tier cities is 15 times that of first-tier cities.
• The peak for customers to order ice cream is midnight, as the coupons are usually release at 12:00 am on JD, and many customers treat online shopping as a way to release pressure before going to bed.

 

(liuchang61@jd.com)

by Rachel Liu

On August 13^th, Italian luxury furniture brand SELETTI opened a first-party flagship store on JD.

JD’s experienced luxury buyers have personally selected products for JD customers based on a thorough understanding of Chinese consumers’ preferences. All products are provided by SELETTI’s authorized channels. JD’s Luxury Express delivery service is also available.

The SELETTI store on JD provides the brands’ new products and classic, hot selling items covering lighting, tableware, glass products and more, such as the Monkey Lamp that SELETTI jointly designed with Italian designer Marcantonio; the Cosmic Dinner collection that SELETTI worked on with Diesel; and other crossover collections, including SELETTI wears Toiletpaper and Studio Job&SELETTI.

SELETTI was founded in 1964 by Romano SELETTI as a family business to import interior design products into Italy. Since 2008, the brand has broadened its product range to decorative items, lighting, furniture and more under the leadership of the second generation of the SELETTI family business, Stefano SELETTI. The brand became one of the most stylish home decoration brands in Italy.

Nearly 200 luxury brands have partnered with JD, covering high-end furniture, apparel, children’s wear, jewelry, skincare brands and more. The joining of SELETTI will provide more choices for fashion lovers on JD.

 

(liuchang61@jd.com)

by Martin Li

JD.com has cooperated with big brands to launch a computer festival for small-and-medium sized enterprises on its e-commerce platform.

The festival sees big popular brands including Microsoft and HP supply their best-selling products, as well as provide discounts to enterprise buyers.

Microsoft offers discounts to enterprises on several popular products from August 3^rd to September 6^th, including Surface Go 2 with a 10.5-inch touchscreen, the business version of Surface Pro 7, and the business version of Surface Pro X with a 13-hour battery life.

HP provides its light high-performing laptops equipped with tenth Gen Intel Core i7 processors.

“With the current 5G trend, digital transformation has become an indispensable step for small-and-medium sized enterprises. JD hopes to help them realize a low-cost and efficient upgrade of electronic office equipment,” said Xiaoqiang Fan, who is in charge of SMEs sales for JD’s computer and digital business unit.

Besides product discounts, enterprise buyers can also receive benefits like two-month free trial use of Office 365 E3, three-year warranty and RMB 600-yuan worth of Internet data cards during the festival.

 

(bjlihao3@jd.com)

 

by Ella Kidron

What do the hot summer months have Chinese consumers craving? JD Big Data has the answer. In a recently released report (in Chinese), JD Big Data Research Institute looked at what summer-related products consumers across China are buying, broken down by geography and age group.

In the month of July*, food (non-fresh) and non-alcoholic beverages, alcohol, fresh produce, sun protection, and cooling products have gotten more attention from consumers across the country. It turns out, though, that consumers’ “summer fix” varies for consumers in different regions and age groups.

The southern provinces of Guangdong and Zhejiang saw alcohol transaction volume increase 60% YOY. In Hubei and Hebei, transaction volume of food and non-alcoholic beverages increased over 50%. Beijing consumers opted for more fresh produce, with transaction volume increasing 130% YOY. Heilongjiang and Gansu provinces saw cooling devices like ACs and fans increase 110% YOY.

Looking at alcohol consumption by age group, post-90s consumption is increasing the fastest, with these consumers preferring liquor over other alcohols. Post-80s consumers tend to choose cocktails and cocktail mixers, while post-70s consumers stay true to Baijiu. Tibet, Shaanxi, Gansu, Guangdong, Zhejiang, Guizhou, Chongqing and other areas saw alcohol consumption increase over 60% YOY.

When it comes to food, post-90s consumers prefer puffed food, perhaps relying on their youth to minimize the blow of these less nutritionally viable treats. Post-80s opt for nourishing Oolong and Iron Buddha tea, while the post-70s cohort is more focused on organic food. Male consumers account for over 70% of purchases of Longjing, a popular green tea also known as Dragon Well, Pu’er and other tea varieties, whereas female consumers account for 60% of purchases of baked goods, rice and flour and condiments. In Xinjiang, Hubei, Hebei, Shandong and Beijing, food consumption increased 50% YOY.

Fresh produce preferences vary by age too. While post-90s consumers choose crab and the more exotic durian, post 80s consumers lean towards antioxidant-rich pomegranates and young coconut. Fresh food consumption was noticeably higher in Beijing, increasing 130% YOY, while Tibet, Ningxia, Gansu, Shanxi, Hebei and Jilin all saw sales in the food and beverage category increase over 65% YOY.

Rather than rely on a shady spot to rest, many Chinese consumers prefer to bring the shade with them. Turnover of sun umbrellas increased over 80% YOY. Younger consumers are getting into the sun protection game earlier than in the past, with the proportion of age 18-25 consumers accounting for 11% more of sales. Age 46 and up consumers are buying more cooling products, accounting for 26% of sales. From a regional perspective, overall consumption of sunscreen-related products in Guangdong, Heilongjiang, Tibet, Jilin and Hainan increased nearly 50% compared with the same period last year, while Qinghai, Jiangxi, Guizhou, Sichuan and Guangxi saw an over 50% increase in cooling products.

*Note: Data for 2020 covers July 1-25, and the YOY comparison refers to the same period (July 1-25, 2019)

by Rachel Liu

On August 12^th, JD’s Omnichannel Fulfillment program won the “2020 Best Practice of Retail Digitalization in China” award during the 2020 China International Retail Innovation Summit held at the Shanghai International Convention Center.

The Omnichannel Fulfillment program was launched in 2019 based on JD’s inventory integration project with Walmart. It integrates multiple types of offline channels, including supermarkets, convenience stores and brands’ offline stores, enabling them to deliver orders that originate from JD directly. This improves the efficiency of the supply chain, shortens delivery time and increases the order for offline stores. The delivery time varies from 30 minutes to next-day, but customers can receive the orders in as few as 15 minutes.

Now the project covers over 200 cities, of which over 160 cities can achieve 1-hour delivery. This April, JD worked with Dada Group (JD’s joint venture for local on-demand retail and delivery) to launch around 100,000 stores from JDDJ (JD Daojia, Dada’s local on-demand retail platform) on JD.com, and provide customers with one-hour delivery for daily necessities. Supermarket chains such as Walmart, Better Life and Yonghui, and vertical offline stores such as maternal & baby stores, pet stores, grocery stores have joined the program. Brand partners include Unilever, Coca-Cola, Nongfu Spring, P&G, and more.

After over one year in operation, the program welcomes several updates. The first is the development of digital products. The program integrates consumption data in cities and stores, both online and offline, and share the insights with brands to help them improve their understanding of customers and interact with customers more precisely. Brands can also develop new products based on the data insights.

What’s more, the data can help JD analyze the consumption habits in different cities, and use LBS (location based services) to recommend products that are popular in the area to customers. A good example is Huaguan Supermarket, a chain supermarket brand in Beijing. To improve the sales of the supermarket online, JD analyzed the characteristics of the customers around the supermarket and launched targeted marketing campaigns, including sending coupons and text messages to potential customers. Sales of the Huaguan supermarkets climbed to top 10 among all supermarkets that joined the Omnichannel Fulfillment program.

“Now we are able to do marketing programs using LBS to target customers in certain areas where the offline stores are located. Combining online and offline, we do see that the ROI is higher than just doing online marketing,” said Changming Li, head of Omnichannel Fulfillment Program, JD FMCG Omnichannel.

With offline stores getting more orders, the Omnichannel Fulfillment team can provide smart replenishment tools to help stores better manage their inventories to optimize the efficiency of the operations of offline stores.

During the 2020 China International Retail Innovation Summit, Changming Li shared his insights on China’s local services market. Unlike food-delivery, which focuses on daily needs, traditional ecommerce, which is based on monthly needs, the local services business targets weekly needs. JD’s Omnichannel Fulfillment program is focused on the optimization of supply chain, which is a strong point for the e-commerce giant. The cooperation with Dada also expanded the ecosystem.

This year, the key for the business is to build the infrastructure, including a more customer-friendly shopping route, and a smoother fulfillment process from order distribution to last-mile delivery. In the future, the Omnichannel Fulfillment program will be expanded to categories including electronics, fashion, auto products and books.

 

(liuchang61@jd.com)

by Vivian Yang

Home DIY is a new trend in China emerging as people spent more time at home this year. JD’s big data showed that in the past 6 months, sales of domestic hardware tools increased 100% year-on-year. Tools from famous Chinese brands with both practical and trendy designs are the new favorites for customers, especially for young men.

From August 3^rd -7^th, a hardware tools show was held on JD.com, offering a variety of products from famous brands such as Dongcheng, Deli, Worx, and Jimi.

Here are some new products that have been well-received by customers during the show:

• The All-in-One Electronic Drill

Drilling and screwing are the most common work at home activities. The Dongcheng WJZ1201 12V lithium battery electric drill combines these two functions for all kinds of assembly need so people don’t need to keep a bunch of different screwdrivers at home. With a battery life up to 50 minutes that meets most of DIY needs, this exclusive offer on JD is an ideal choice for many Chinese families.

• The Hot Glue Gun for Kids

DIY with tools is beneficial for children’s hands-on ability and a good activity for parent-child interaction. Deli’s hot glue gun for kids is very easy for them to use and carefully designed to meet the 3C national product safety certification. No matter how the drill is held in hand or placed on the table, the special design will protect the user and the table from getting burnt.

 

• Customized Drill Combo Toolkit Made from Customer-to-Manufacturer (C2M) Model

WORX and JD have jointly introduced an electric drill combo tool kit through the C2M model. The kit contains 59 components covering almost all kinds of home DIY needs. WORX’s lithium ion cordless combo tool kit WX1295 was the most popular product during this year’s 618 shopping festival.

• A Toolkit of Both  Electric and Manual Tools

Disassembling, peeling wires, nailing, plumbing… JIMI’s new combo kit provides a comprehensive toolkit solution. In addition to the electric drill, the set also contains all kinds of pliers, screwdrivers, wrenches and hand tools such as a claw hammer and a tape measure.

 

(vivian.yang@jd.com)